Biden orders restriction of US investments in high-tech sectors in China

(Patria) - US President Joe Biden issued an executive order aimed at restricting certain US investments in sensitive high-tech areas in China, a move that could further strain ties between the world's two leading economies, AFP reports.

The long-awaited rules, expected to take effect next year, target sectors such as semiconductors and artificial intelligence, as Washington seeks to limit access to key technologies.

"The United States' commitment to open investment is a cornerstone of our economic policy and provides significant benefits to the United States," Biden said in a letter to congressional leaders announcing the executive order.

"However, certain US investments can accelerate and increase the success of the development of sensitive technologies and products in countries that are developing them to counter the capabilities of the United States and its allies," he added.

The program is set to prohibit new outbound investments of private capital, venture capital, and
joint ventures in advanced semiconductors and some quantum information technologies in China, according to the Treasury Department.

China could use US investments to advance its ability to produce sensitive technologies critical for military modernization, the Department stated.